In order to provide a fill-up to the growth of International Financial Services Centre, following proposals are made:-
-Capital gains arising from transaction undertaken in foreign currency on recognised stock exchange located in the International Financial Services Centre (IFSC) shall be exempt from tax even when STT is not paid in respect of such transactions.
-In case of company, located in IFSC and deriving its income solely in convertible foreign exchange, MAT shall be chargeable at the rate of 9% instead of 18.5%
-Dividend Distribution Tax shall not be applicable in respect of profits distributed as dividends by a Company located in IFSC and deriving its income solely in convertible foreign exchange out of its current income on or after 01.04.2017
– Further, no tax shall be levied on receipt of dividends by the shareholders from a Company located in IFSC
The above amendments shall be applicable from 1st April, 2017 and shall accordingly apply in relation to AY 2017-18 and subsequent years.
-In order to provide further impetus to IFSC, it is proposed that no Securities Transaction Tax (STT) or Commodities Transaction Tax (CTT) shall be levied on taxable securities or commodities transactions entered by any person on a recognised stock exchange located in IFSC wherein the consideration is in foreign currency
The above amendment shall be applicable from 1stJune,2016
